EUR/CAD has been correcting itself below the 1.5350 area for a few days now, whereas certain volatility can be observed at highest rate in the process. Ahead of the upcoming high impact economic events and reports this week, such volatility is no surprise.
This week, ECB President Draghi is going to speak about the nation's key interest rate and policies which is expected to have a hawkish impact on the upcoming market behavior. Today, Italian Trade Balance report was published with a decrease to 2.94B from the previous figure of 4.53B which was expected to be at 3.21B. Despite the worse economic report, EUR was saved by the German Buba monthly report which did provide certain improvement results for the zone.
On the other hand, CAD has been struggling with the recent economic reports, whereas this week CAD is expected to gain certain momentum in the process. This week, on Friday, CAD CPI, Core Retail Sales, Common CPI, Trimmed CPI and Retail Sales reports are going to be published which are expected to inject certain volatility in the market. Though no expected figures and values are being published, CAD is expected to have certain positive results in the coming days.
As of the current scenario, if Draghi provides hawkish outcome for the Eurozone economy this week, EUR is expected to gain more momentum over CAD in the coming days. Though CAD has a series of impactful economic reports, the market is still quite indecisive with the economy, until the result publishes in the coming days. To sum up, EUR is expected to have an upper hand over CAD in the process.
Now let us look at the technical view. The price has been quite bullish recently below the 1.5350 area, from where it is expected to break higher with target towards the 1.57 area in the coming days. Though there are still certain chances of the price pushing lower towards the 1.50 area, but the pressure is still quite bullish in the process. As the price remains above 1.50, the bullish bias is expected to continue further.
